Bureau of Local Government Finance Opinion

October 29, 2012 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 2nd Indorsement Respectfully returned to the ICO-Regional Director for Local Government Finance, Department of Finance, Region XIII, CARAGA Administrative Region, Butuan City, the herein preceding Indorsement dated July 9, 2012, relative to the request of the National Grid Corporation (NGCP) for the cancellation of tax declarations corresponding to certain real properties declared under the name of said corporation located at Barangay Tabon, Bislig City, and instead be declared in the name of its previous owner NPC/TRANSCO. In this connection, enclosed is a copy of this Bureau's 2nd Indorsement dated July 31, 2012, addressed to that Office, in reply to the said request of NGCP which ruled that: ". . . NGCP is liable to pay real property taxes even though the real properties thereof (machinery and equipment) are actually, directly and exclusively used in the transmission and generation of electric power considering that NGCP is not a government-owned or controlled corporation (GOCC) mandated under Section 234 (c) of the Local Government Code (LGC) of 1991 (R.A. No. 7160), and being the beneficial user of the subject properties. "Thus, the request for the cancellation of the abovementioned TDs cannot be given due course." Please be guided accordingly. TACEDI (SGD.) SALVADOR M. DEL CASTILLO Executive Director